A process requires an edge which is simply a statistical advantage you have over other players. A strong psychological state can be considered a bonus edge.
A COMPLETE BREAKDOWN OF MY MOMENTUM DAY TRADING PROCESS.
[THREAD]
A process requires an edge which is simply a statistical advantage you have over other players. A strong psychological state can be considered a bonus edge.
1) Knowledge and idea generation
2) Method and trade execution
3) Risk management and mindset
Each element is necessary and it builds a solid foundation in your trading process.
These factors make up the trading trinity.
In PM, I look for:
- Top gainers (40%+)
- Notable volume on gappers
- News or catalysts (to justify gap)
- Float (<50M)
- Market cap (<500M)
- Range (check daily)
- Price (<25)
- Stock personality (check daily)
- Filings (cash on hand and offering potential)
- https://t.co/dGrDjwtOR8
- https://t.co/Vc256oZCre
- https://t.co/AFrA2ebGr6
- https://t.co/N9nDmqz54E
- https://t.co/0aEt36amzx
- https://t.co/K5b5oercFQ
- https://t.co/VogPh4QNHM
- https://t.co/OoMHVH19CX
I hone in on my top 2.
Also, I have any names that have had momentum and held trend in the prior days as back burner watches since they may see continuation.
I want to identify:
- Prior ranges (since I believe stocks will trade in ranges until they breakout/down)
- Key levels from the daily
- PML and PMH
Also, I take note of the trend and the 50 and 200 SMA.
INDICATORS:
- 9 EMA = Red
- 20 EMA = Light Blue
- 50 SMA = Yellow
- 200 SMA = Green
- VWAP = Purple
- Volume Bars
TIME FRAMES:
- 5 Minute
- 1 Minute
- 1 Day
I prefer to dip buy most of the time because breakout trades require a certain market condition.
I try add as close to major key levels as possible for low risk/high reward.
When it comes down to a channel line or key level. I look to see if price respects that level for an entry with risk just beneath.
I don’t breakout add unless the market is hot. I would rather for a breakout and re-test and get my adds there.
I flick between the 1m and 5m and I mainly watch candle bodies.
Seasonal strategies are simply strategies that are high probability given the current market conditions.
*I go through and explain some strategies in my pinned tweet.
I constantly assess sentiment and I always ask myself: “Who’s in control and who’s stuck?”.
This helps me better understand the price action.
I love asymmetrical bets where risk/reward and probability is skewed heavily in my favor.
I have a max pain of 10% on a trade and I will risk <2.5% of my account on a trade.
You can calculate position size by:
Max risk / (Entry price - Stop price) = Position size
I believe these levels to be potential pivot points so I’m really strict at cutting my losses because if I carry on holding then price is likely to flush.
I don’t hold bags!
Either I will:
1) Scale most (50%+) on the first target and move my stop to entry
2) Let the stock work and only scale out small amounts (~10%) at key resistances and ride the trend based on the 20 EMA on the 5m
However, I take note of runners that remain strong and AH movers depending on their action and their close.
I will chart these names when market closes. I keep them on back burner watch the next day.
It’s what I find consistency, repeatability and profitability in.
It works for me but it may not work for you.
You can take this thread as a guideline and adapt it to fit your way of trading.
Ideally, I want an ADR% of 10+ because I’m interested in explosive momentum moves.
Also, you always want to keep an eye on volume. You don’t want volume to fall off a cliff for a trade you’re in.
Keep things simple and be able to do them time and time again with ease.
There’s no need to make things complex and sophisticated when they don’t need to be.
It’s better to have something straightforward where you just need to execute well.
In many ways, my strategy is inspired and derived from their own.
More from Tradingthread
My threads, data, tools I use, investment philosophy and frequently asked questions. Please review these links.
1. Overview
https://t.co/p2gjgPvhHG
2. Investing Process
https://t.co/ZpJeN0JiSV
3. Tools I use and
4. Market Analysis https://t.co/Ol9POhXMiV
5. Due diligence and deep dives on stocks
https://t.co/0oTNNsXuwr
6. General
7. My ongoing
8. List of about 20+ email newsletters in investing / technology and self help that I would
9. I do a lot of writing about IPOs and like to research new companies.
You can follow my writing and subscribe (Free) at
1. Overview
https://t.co/p2gjgPvhHG
2. Investing Process
https://t.co/ZpJeN0JiSV
3. Tools I use and
4. Market Analysis https://t.co/Ol9POhXMiV
5. Due diligence and deep dives on stocks
https://t.co/0oTNNsXuwr
6. General
7. My ongoing
8. List of about 20+ email newsletters in investing / technology and self help that I would
9. I do a lot of writing about IPOs and like to research new companies.
You can follow my writing and subscribe (Free) at
A mega thread, this contains some of my popular threads which may help you in your trading.
Thanks for reading :)
Pyramiding
Don't change your trading
Trendlines
Scaling in-out
Thanks for reading :)
Pyramiding
A thread on Pyramiding- pic.twitter.com/8EOSSFMZ2w
— Trader knight (@Traderknight007) December 27, 2020
Don't change your trading
"Don't change the trading rules after every trade."
— Trader knight (@Traderknight007) November 29, 2020
If you do change them frequently then this thread is for you.
Let's talk about the law of large numbers and how it benefits traders to be profitable.
[Thread]\U0001f447\U0001f447\U0001f447 pic.twitter.com/pEUr0wH354
Trendlines
A thread on Trend-lines pic.twitter.com/GsLGzl8A3c
— Trader knight (@Traderknight007) January 2, 2021
Scaling in-out
A thread on SCALING IN - OUT METHOD - pic.twitter.com/bJ1N5ZjAiK
— Trader knight (@Traderknight007) January 9, 2021
I've compiled a master thread of the top 5 threads I've made in 2021🔥
Here's a complete guide to everything you should know about trading
👇👇👇
Before I dive in, do me a favor and retweet the tweet above this one.
I want everyone to win in 2022, and a like/RT will help someone out there who really needs it🙏
LET'S DIVE IN👇
How to Scan for stocks whose options move over
My EXACT Strategy breakdown in a brief
The Top Tools every trader should
Here's a complete guide to everything you should know about trading
👇👇👇
Before I dive in, do me a favor and retweet the tweet above this one.
I want everyone to win in 2022, and a like/RT will help someone out there who really needs it🙏
LET'S DIVE IN👇
How to Scan for stocks whose options move over
Ever wonder how traders get in stocks before they explode? \U0001f9d0
— FT Trading\u2503Stock Trader (@FT__Trading) October 27, 2021
Or find options that move 1,000% in a single day/week?\U0001f92f
I made a thread going over exactly how I find these stocks BEFORE they take off \U0001f680
\U0001f447\U0001f447\U0001f447
My EXACT Strategy breakdown in a brief
I\u2019m a full time day/swing trader for a living.
— FT Trading\u2503Stock Trader (@FT__Trading) October 20, 2021
I\u2019ve learned a lot through my time trading.
Here\u2019s a thread going over my exact trading strategy
As well as some helpful tips/tricks.
\U0001f447\U0001f447\U0001f447
The Top Tools every trader should
Ever wonder what the best tools for trading are? \U0001f528
— FT Trading\u2503Stock Trader (@FT__Trading) December 28, 2021
Here are the top tools I use as a full-time trader\U0001f9f5
\U0001f447\U0001f447\U0001f447
Due Diligence Thread 🚨👇
In this thread I will be revealing to you guys my step by step process on how I do my due diligence on any ticker along with the process of how I find good setups and what resources and websites do I use to do it.
Step 1: Finding Good Chart Setups (continued)
Attached below is my personal finviz screener settings which I use to look at charts and how I
change some of the settings to my own preferences.
Site Reference: https://t.co/liI2ktnHhz
PS: Sometimes I don't even select any pattern
My favorite bullish chart setups that I personally look out for initiating swing positions:
1-) Falling Wedge Pattern
2-) Ascending Triangle Pattern
3-) Fish Hook / Oversold Bounce Pattern
4-) Channel Up Pattern
5-) Descending Triangle Breakout Pattern ( Towards Upside)
Step 2: Checking for Offerings
Once I have found a good chart, with a high risk reward ratio, the immediate first thing that I
do is to look out for any signs of upcoming offering. Since I don’t want to get caught in
offerings , these are the two things that I lookout for.
Step 2: Checking for Offerings (continued)
1-) Firstly, I look for whether the company had made any recent offerings in the last two months, if yes then there are less chances of new offerings.
In this thread I will be revealing to you guys my step by step process on how I do my due diligence on any ticker along with the process of how I find good setups and what resources and websites do I use to do it.
Step 1: Finding Good Chart Setups (continued)
Attached below is my personal finviz screener settings which I use to look at charts and how I
change some of the settings to my own preferences.
Site Reference: https://t.co/liI2ktnHhz
PS: Sometimes I don't even select any pattern
My favorite bullish chart setups that I personally look out for initiating swing positions:
1-) Falling Wedge Pattern
2-) Ascending Triangle Pattern
3-) Fish Hook / Oversold Bounce Pattern
4-) Channel Up Pattern
5-) Descending Triangle Breakout Pattern ( Towards Upside)
Step 2: Checking for Offerings
Once I have found a good chart, with a high risk reward ratio, the immediate first thing that I
do is to look out for any signs of upcoming offering. Since I don’t want to get caught in
offerings , these are the two things that I lookout for.
Step 2: Checking for Offerings (continued)
1-) Firstly, I look for whether the company had made any recent offerings in the last two months, if yes then there are less chances of new offerings.
